Vatican City Basic Information

By | July 21, 2022
Basic data
Capital Vatican City State
Population 618
Language Italian
Religion Roman Catholic
State system absolute monarchy
Head of State Pope Francis
Head of government Secretary of State (Prime Minister) Cardinal Pietro Parolin
Currency name Euro (EUR)

Vatican City Basic Information

Travel
Time shift No
Economy 2021
Nominal GDP (billion USD) the data is not available
Economic growth (%) the data is not available
Inflation (%) the data is not available
Unemployment (%) the data is not available

The main sources of income of the Vatican City State (as an autonomous entity) come from cultural activities, mainly from the income of the Vatican Museums, income from renting real estate, from issuing postage stamps, coins and from its own publishing house.

The EU has concluded a revised currency agreement with the Vatican, allowing it to use the Euro as its official currency. It also has a preferential customs agreement with the EU based on an agreement between the Holy See and the Republic of Italy. This exempts him from all EU fees and taxes (he only exports a small amount of goods to Italy).

1. Basic information about the territory

Subchapters:

  • System of governance and political tendencies in the country
  • Foreign policy of the country
  • Population

The system of governance and political tendencies in the country

The Holy See is an independent, non-hereditary, theocratic absolute monarchy headed by an elected Pope (head of state, supreme body of executive, judicial and legislative power). In parallel with the Holy See, there is the Vatican City State (established on the basis of the Lateran Agreements with Italy of February 11, 1929). Both the Holy See and the Vatican City State enjoy subjectivity under international law. Embassies are formally accredited to the Holy See. The authorities of the Vatican City State are responsible for state administration. Check computerminus to learn more about Vatican City political system.

Foreign policy of the country

The general objectives of the foreign policy of the Holy See are a reflection of the traditional basic postulates of the Catholic faith and their application in contemporary reality. The method of the Holy See is quiet diplomacy. The Holy See maintains diplomatic relations with 183 sovereign states, the EU and the Sovereign Order of the Knights of Malta. The pontificate of Pope Francis is aimed at promoting peace and ending war conflicts, social justice, the issue of refugees, a general conversion to the environment, the establishment of a new “more humane” economy, including the need to renew the global education system.┬áCheck relationshipsplus for Vatican City defense and foreign policy.

The relations of the Holy See with the EU are rated as excellent on both sides. From the point of view of diplomacy, full-fledged reciprocal bilateral relations were established in 2006. The dialogue between the EU and the Holy See develops primarily along the line of the papal nuncio in Brussels. It mainly includes the social aspect of world problems and is fully in line with Pope Francis’ efforts to protect the weak and the poor (social cohesion, solidarity, migration issues, humanitarian aid, protection of democracy and human rights in the world). The Holy See has long expressed its support for joint European projects focused, among other things, on vaccination solidarity (the COVAX international vaccination program), the restoration of Europe after the covid pandemic (NextGenerationEU), the aid and protection of refugees and migrants (the New EU Pact on Migration and Asylum). It also pays great attention to climate and environmental protection.

Population

According to official data, the Vatican City State has 618 inhabitants, of which 246 are residents.

2. Economy

Subchapters:

  • Basic data
  • Public finances and the state budget
  • Banking system
  • Tax system

Basic data

1st paragraph: Outlook and state of GDP, indebtedness, fiscal stability, shocks, possible overheating of the economy, capital, regional comparison, inflation and unemployment.

2nd paragraph: Brief description of the structure of the economy (what is its main added value, what it produces, what it imports, etc.)

Table from MOP + additionally balance of payments, indebtedness/GDP.

Pointer 2019 2020 2021 2022 2023
GDP growth (%) ON ON ON ON ON
GDP/population (USD/PPP) ON ON ON ON ON
Inflation (%) ON ON ON ON ON
Unemployment (%) ON ON ON ON ON
Export of goods (billion USD) ON ON ON ON ON
Import of goods (billion USD) ON ON ON ON ON
Trade Balance (Billion USD) ON ON ON ON ON
Industrial production (% change) ON ON ON ON ON
Population (millions) ON ON ON ON ON
Competitiveness ON ON ON ON ON
OECD export risk ON ON ON ON ON

Source: EIU, OECD, IMD

Public finance and state budget

Public finance 2021
State budget balance (% of GDP) ON
Public debt (% of GDP) ON
Current account balance (billion USD) ON
Taxes 2022
AFTER ON
F.O ON
VAT ON

1st paragraph: Current status + outlook. (information mostly from EIU)

Paragraph 2: Balance of payments, foreign exchange reserves, description of data in the table in the public finance section (i.e. state budget deficit/GDP, public debt/GDP), foreign indebtedness, debt service

Banking system

How does the banking system fare, closedness/openness of the system, regulation, development of interest rates, the strongest top 5 banks (domestic + possibly foreign) + a comment on each of them, information on letters of credit, any specifics (e.g. Islamic banks)

Tax system

(if possible use Deloitte tax guides and highlights, available on the website https://dits.deloitte.com/#TaxGuides )

1 paragraph Clear/unclear, stable/unstable tax system.

2 paragraph Taxation of FO (total and who bears it), PO, VAT.

3 paragraph. Expected development.